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Money managers increased their net long position in CBOT corn futures and options, reaching the most bullish stance since April 2022, Reuters reported on Monday.
In the week ending February 4, their net long position grew to 364,217 contracts, up from 350,721 contracts a week earlier. This marked the seventh consecutive week of net buying in corn, a pattern only seen once in the past four years, during September 2022.
Despite not reaching the record net long of 429,189 contracts set in 2010, funds are holding a record number of gross long positions in corn. The recent buying streak could be nearing a peak, as the most-active CBOT corn futures hit their highest price since October 2023 on February 5, followed by a 1.4% decline in the subsequent three sessions.
U.S. corn export demand remains robust, and domestic ethanol production has hit several weekly records, while a potential trade dispute with Mexico, a major corn buyer, is currently on hold.
In contrast to their bullish corn position, funds have maintained a bearish view on wheat, although they reduced their net short position in CBOT wheat futures and options by over 20,000 contracts to 90,442 in the same week. This adjustment was also driven by short covering, with most-active CBOT wheat futures climbing nearly 6% in the week prior and adding another 1% in the following three sessions.
In the soy complex, money managers reduced their positions in both directions but ended with a slight increase in their net long position in CBOT soybeans futures and options.
CBOT soybean meal saw a 4% increase that week, and money managers cut their net short significantly. Meanwhile, CBOT soybean oil futures and options reached an 11-week high net long position.
The trading community is also closely watching other commodities, with money managers pushing their net short in ICE No. 2 cotton futures and options to a record high and reducing their net long in CME live cattle futures and options from the previous week’s record levels.
Market participants are awaiting the U.S. Department of Agriculture’s upcoming monthly supply and demand reports, with expectations of lower production numbers for Argentina and slightly higher ones for Brazil.
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